Chipotle Mexican Grill (CMG) Retails >80% of Digital Sales as Dining Rooms Reopen, PT Raised to $1,875 at Credit Suisse

April 22, 2021 6:25 AM EDT
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Price: $1,324.51 -0.53%

Rating Summary:
    27 Buy, 17 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 14 | Down: 5 | New: 58
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Credit Suisse analyst Lauren Silberman raised the price target on Chipotle Mexican Grill (NYSE: CMG) to $1,875.00 (from $1,760.00) after the company reported 1Q SSS of 17.2%, EPS of $5.36 and a restaurant margin of 22.3%. CMG guided 2Q SSS in the range of high 20% to 30%, implying 2-yr SSS of ~15-17% (~21% in 1Q), with April to-date 2-yr SSS ranging high teens to 20%+.

The analyst reiterated an Outperform rating, stating "CMG continues to execute on top-line with a
multi-faceted sales strategy, enhancing visibility to the path to $3MM+ AUVs (a level few systems have attained). We see no obvious capacity constraints to throughput given the company’s double production lanes, which can effectively double in-store capacity at a ~50% digital mix. CMG continues to retain 80-85% of digital sales even as dining rooms reopen, and there appears to be limited overlap between in-store & digital customers (10-15% doing both), underscoring our view that CMG should benefit as consumer mobility increases".



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